MarilynG1
Expert Alumni

Get your taxes done using TurboTax

@Gwennie5 If you never reported any Rental Income or claimed any Rental Expenses, you could report the sale as the 'Sale of a Second Home'.

 

However, depending on how much you originally paid for the house and how much you sold it for, you could still have Capital Gains to report (and be taxed on).

 

A Loss would not be deductible, however. 

 

Click this link for info on How to Report the Sale of a Second Home

 

Legally, you should enter the house as 'Rental Property' with a Cost Basis of  whatever the FMV was in 2010 when you started renting it. 

 

TurboTax will calculate the Accumulated Depreciation for you. The IRS requires this, even if you never claimed Depreciation.

 

Then, depending on the Sale Price and the current Cost Basis (original cost minus accumulated depreciation), you may still have a Capital Gain to report.  If you have a Loss, it could be deductible though. 

 

You can claim Sales Expenses, and add any major improvements to the Cost Basis when reporting the sale. 

 

Click this link for more info on How Capital Gains are Taxed.

 

This link has info on How to Report Sale of Rental Property

 

 

 

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